Pipeline Investment Program (PIPE)

The Pipeline Investment Program (PIPE) is a funding initiative administered by the Pennsylvania Department of Community & Economic Development (DCED), aimed at expanding access to natural gas infrastructure in Pennsylvania. The program is managed through the Commonwealth Financing Authority (CFA) and provides grants to eligible entities for the construction of natural gas pipelines to extend service to industrial, business, and residential areas. PIPE was established to support Pennsylvania’s economic growth by leveraging its vast natural gas resources to attract manufacturers, create jobs, and reduce energy costs for businesses and communities. Eligible applicants include economic development organizations, businesses, municipalities, hospitals, and school districts. The program funds projects that extend natural gas pipelines, enable large-scale residential conversions, and support combined heat and power (CHP) systems. Grants may be used for a variety of project costs, including land acquisition, pipeline construction, engineering and design, tapping costs, and administrative expenses. However, certain expenses such as refinancing existing debt, lobbying, and costs incurred before grant approval are ineligible. PIPE requires applicants to provide matching funds covering at least 50% of the total project cost. Additionally, grant recipients must comply with all federal, state, and local permitting and planning requirements, including zoning regulations and comprehensive land use plans. Construction projects funded through PIPE may also be subject to Pennsylvania's Prevailing Wage Act. Applicants must submit proof of notification to county and local municipalities about the intended project. The maximum grant amount available per project is $1.5 million or 50% of total project costs, whichever is less. An additional grant of up to $500,000 may be awarded for tapping costs related to interconnecting distribution facilities. Projects are evaluated based on several factors, including their impact on job creation and retention, the number of properties gaining access to natural gas, alignment with economic development needs, and local support. Applications must demonstrate that the project will commence within 90 days of approval and provide documentation of funding commitments and cost estimates. Applications for PIPE funding must be submitted electronically through DCED’s Single Application for Assistance portal. The application must include detailed project descriptions, cost estimates, matching fund commitments, planning compliance letters, and resolutions from public sector applicants. A $100 non-refundable application fee is required. Upon approval, grant recipients will receive a commitment letter and grant agreement, which must be signed within 45 days to secure funding. For program inquiries, applicants may contact: PA Department of Community & Economic Development Site Development Office Pipeline Investment Program Commonwealth Keystone Building 400 North Street, 4th Floor, Harrisburg, PA 17120-0225 Phone: (717) 787-6245 Fax: (717) 772-3581 Email: ra-dcedsitedvpt@pa.gov